ABOUT
RHEAD ESTATES

A resale property is an existing home bought from a private owner and is subject to Transfer Tax (ITP), while a new development is purchased directly from the developer and is subject to VAT (IVA) plus stamp duty (AJD) instead. New builds also come with developer guarantees, whereas resales are sold as-is.

On a resale, buyers pay a flat Transfer Tax (ITP) of around 7% in Andalusia, calculated on the higher of the agreed price or the property's official reference value. On new builds, VAT (typically 10%) and stamp duty (AJD) apply instead. Budget an additional 1-2% for notary, registry and legal fees on top.

Yes, both EU and non-EU citizens can buy property freely in Spain. The main practical requirement is obtaining an NIE (foreigner identification number), which is needed to sign at the notary, open a Spanish bank account and pay taxes.

An NIE (Número de Identificación de Extranjero) is a tax identification number issued to foreigners in Spain. It's required to sign a property purchase at the notary, open a Spanish bank account, and pay any associated taxes, so it should be arranged early in the buying process.

Owners pay annual IBI (local property tax) based on the cadastral value, community fees where applicable, and non-resident owners must also file an annual notional income tax even if the property is not rented out. Wealth tax may also apply to owners with high-value Spanish assets.

Yes, most Spanish banks lend to non-residents, typically covering 60-70% of the property's value, compared to up to 80% for residents. Lenders will ask for proof of income, tax returns and existing liabilities, and having an NIE and Spanish bank account in place speeds up approval.

After agreeing a price, buyers typically sign a private reservation or deposit contract, carry out legal and structural due diligence, then complete at the notary. With an NIE already in place and financing arranged, the process usually takes around 6-8 weeks, though cash purchases can move faster.

While not a legal requirement, it's strongly recommended. An independent local lawyer carries out due diligence on the title, checks for outstanding debts or licence issues, and ensures the contract protects your interests before you sign or hand over any deposit.

A reservation contract takes the property off the market while due diligence is completed, usually against a deposit of 1-10% of the price. Refundability depends on the contract terms: reservation deposits are often refundable if due diligence uncovers a problem, while private purchase contracts (arras) are typically non-refundable if the buyer withdraws without cause.

Short-term holiday lets generally require a tourist rental licence, which varies by region and municipality. Rental income must be declared for tax purposes, and non-resident landlords are taxed differently to residents, so it's worth taking local tax advice before listing a property for rent.